Deck 2: Trends in Human Resource Management

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Question
Netflix Treats Workers "Like Adults"
When Patty McCord talks about human resource management at Netflix, she refers to treating people "like adults." McCord, until recently the company's chief talent officer, means the company hires people who are mature enough to take responsibility and then simply gives them responsibility. The result, McCord insists, is that employees live up to what is expected of them. If not, the company feels free to find someone else. That direct approach makes sense to the knowledge workers who populate the results-oriented, data-respecting world of information technology.
When McCord was at Netflix, she and CEO Reed Hastings settled on five principles that would direct the company's approach to human resource management:
1. Hire, reward, and keep only "fully formed adults" For McCord and Hastings, such employees use common sense, address problems openly, and put company interests ahead of their own. People like this need not be managed with endless policies. Rather, the company can trust them to take off time when they need it and spend money appropriately. The employees also are literally adults; Netflix favors hiring experienced workers over recruiting at colleges.
2. Tell the truth about performance. Managers are expected to make performance feedback part of their routine conversations with employees. If an employee is no longer working out, managers are supposed to let him or her know directly, offering a good severance package to smooth a dignified path to the exit.
3. Managers are responsible for creating great teams. The manager of each group is expected to envision what that group should accomplish and what skills are necessary. If the manager needs different skills than the ones already on the team, the manager is supposed to make changes. To keep workers on the team, Netflix is open about paying salaries in line with the labor market-what employees would be offered if they considered leaving for a competitor.
4. The company's leaders must create the company culture. Netflix executives are supposed to model behaviors such as truth-telling and treating people like adults.
5. HR managers should think of themselves first as businesspeople. As chief talent manager, McCord focused on the company's financial success and products, not on employee morale. She assumed that if employees, as adults, were able to make Netflix a high-performance organization and be compensated fairly, that would improve morale more than anything.
To put these principles into action, Netflix rewards high-performing employees with fair pay and a flexible schedule. Employees who do not perform up to standards are asked to leave. Rewarding high performance, in fact, makes it easier to allow flexibility and empowerment, because managers do not have to police every action and decision. It also creates an environment in which employees do not assume they have a Netflix job forever. Rather, they are responsible for doing good work and developing the skills that continue to make them valuable to their employer. Netflix's approach to talent helps the company stay agile-perhaps agile enough to withstand the shifting winds of entertainment in the digital age.
How well suited do you think Netflix's principles are to managing the knowledge workers (mainly software engineers) who work for Netflix Explain.
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Question
When an organization decides to operate facilities in other countries, how can HRM practices support this change
Question
How does each of the following labor force trends affect HRM
a. Aging of the labor force.
b. Diversity of the labor force.
c. Skill deficiencies of the labor force.
Question
Why do organizations outsource HRM functions How does outsourcing affect the role of human resource professionals Would you be more attracted to the role of the HR professional in an organization that outsources many HR activities or in the outside firm that has the contract to provide the HR services Why
Question
HOW SHOULD EMPLOYERS PROTECT THEIR DATA ON EMPLOYEES' DEVICES
One area in which business managers might consult with HR managers involves the treatment of company data on employees' electronic devices. In the past, organizations stored their data on their own hardware. But laptop computers and, more recently, tablet computers and smartphones make it possible for employees to carry around data on these mobile devices. Increasingly often, the devices are not even owned by the company, but by the employees themselves. For example, an employee's smartphone might include business as well as personal contacts in several mobile apps.
The situation is convenient for everyone until something goes wrong: a device is lost, an employee becomes upset with a manager, or the organization lays off some workers. From the standpoint of protecting data, the obvious solution is to remove the data from the devices. So far, no law forbids this. However, it has consequences for the employees. Remotely wiping data from a device will remove all of it, including the user's personal data, such as photos and addresses.
Companies are addressing concerns by crafting security policies for employees who want to use their own devices for work-related tasks such as e-mail. Typically, the policy requires the employee to download a program for mobile device management. If specified conditions arise, such as loss of the device or termination of the employee, the company can use the software to send the device a message that wipes out all the data stored on the device. The company also can give the employee some notice, allowing time to save personal data, but this increases the risk to the company. Some employees have complained about their phones being unexpectedly erased after they left a company. They admit they might have been given a link to terms and conditions but tend not to read the terms of using a program such as company e-mail.
Imagine you work in the human resources department of a company considering a policy to protect its data on employees' mobile devices. In advising on this policy, what rights should you consider
Question
What HRM functions could an organization provide through self-service What are some advantages and disadvantages of using self-service for these functions
Question
Taking Care of People Gives Cisco Systems a Strategic Advantage
Strategic thinking about human resource management and other services has helped Cisco Systems take care of its people and even people beyond the organization. At the same time, it has helped the company, which sells computer networking hardware and services, maintain consistent growth and profitability.
During the recent recession, sales slowed, and Cisco's executives sought more efficient ways to operate. Out of that effort came a plan for restructuring HRM and other services such as purchasing and customer support. Management determined that these services would be delivered on a global scale as part of a Global Business Services unit. That unit, in turn, was divided into groups focused on delivering day-to-day services and others focused on strategic planning. HRM employees were divided, with some assigned to tactics and others to strategy.
The head of tactical HRM is Don McLaughlin, Cisco's vice president of employee experience. Applying his background in manufacturing, McLaughlin took a businesslike approach. He set measurable goals for hiring, training, rewards, communication, and work design, treating Cisco's employees as customers of those services. He measures the time to deliver each service and his customers' satisfaction. While driving down the cost of each service by at least 10%, McLaughlin has maintained or raised customer satisfaction scores. He works closely with the human resource partners assigned to support strategy for each Cisco group around the world. Those HR managers get to know their businesses and create plans for improving the company's talent, leadership, organization, and culture.
One of the regional HR managers is Danielle Monaghan, human resource partner in Cisco's Technical Services Division in San Jose, California. Born in South Africa, Monaghan worked for other technology companies before joining Cisco to manage human resources in Asia. In the Asian assignment, she saw firsthand some of the challenges of recruiting and developing talent in the continent's distinctive cultures. In Japan, for example, she needed to build networks to locate talent, because it is inappropriate to make a job search public. In China, the issues are developing leadership skills and learning to manage the rise of unions. Monaghan's global perspective is now helping Monaghan tackle strategic issues such as workforce planning.
Perhaps one of the company's most distinctive efforts is the Cisco Learning Network, which grew out of the training efforts of Cisco's education services division. The division trains customers and partners, and it saw an online network as a way to reach people around the world with information about how to use the technology Cisco sells. People from high school students through experienced professionals join the network to take classes, study together, and share ideas. As participation has ballooned from 600,000 in the first year to more than 2 million recently, the company added information about careers, job openings, and industry trends. The data created through social networking and the connections to a worldwide community have given Cisco an edge in building its reputation and understanding its labor market.
How has Cisco Systems prepared itself for responding to trends in the labor force
Question
How is the employment relationship that is typical of modern organizations different from the relationship of a generation ago
Question
Outsourcing Enriches the Bottom Line for Land O'Lakes
Land O'Lakes is an example of a company that has successfully reduced costs by outsourcing human resource activities. Best known for its butter and other dairy products, the company is a food and agriculture cooperative owned by the farmers who participate in the business. The co-op's 10,000 employees work toward a strategy of delivering strong financial performance for its farmer-owners while providing programs and services that help the farmers operate more successfully.
In support of that strategy, Pam Grove, the senior director of benefits and HR operations, led Land O'Lakes to outsource the administration of employee benefits. Management determined that benefits administration was not an activity that contributed to the company's strategy, and Land O'Lakes already had successfully used an outside firm to administer its 401 (k) retirement savings plan. So Grove arranged to have a firm administer its health insurance and pension plans as well.
Outsourcing achieved the basic goal of reducing costs, but that was not the only advantage. Grove freed up time for focusing on strategy-related activities, and she says the outsourcing arrangement also has improved service to employees. When the company tackled health benefit costs by offering a high-deductible health plan, which shifts spending decisions to employees, Grove and her staff visited 100 Land O'Lakes locations to explain the new option. Employee enrollment was double her expectations, helping the company save millions of dollars while keeping employees satisfied with their benefits.
How does Grove ensure that a cost-conscious practice such as outsourcing is well received by employees
Question
Discuss several advantages of flexible work schedules. What are some disadvantages
Question
Less Helpful than a Search Engine
A lot of managers are disappointed in the support they get from their HR teams, according to a survey by the Hay Group, a global consulting firm. The survey questioned line managers and HR directors in China, the United Kingdom, and the United States about their working relationships. The results suggest that those relationships are often strained.
HR directors reported being challenged by cutbacks in their department. One-third said they spend 21% to 50% of their time responding to inquiries from managers, and three-fourths said line managers want immediate responses. For their part, 41% of line managers in the United States said the HR department is too slow in responding, and 47% said they could make decisions better and faster if they had more information from the department. An embarrassing 29% rated Google above the HR department for providing pertinent information.
Hay's consultants suggest that human resource managers need to focus on how they can empower line managers by providing them with easy access to relevant information.
Suggest one way that line managers can improve communications with HR managers, so they get the support they need.
Question
What Social-Media Policies Are Suitable across Generations
Some managers believe organizations need policies restricting employees' access to social media such as Twitter and Facebook. Their belief is based on the assumption that using social media is merely a distraction from doing real work. However, the research evidence for this assumption is mixed -and the impact of social media may vary across generations of workers.
Some studies simply ask employees for their opinions about their access to social media. A survey of Canadian workers found that almost two-thirds have been distracted by social media, e-mail, or Web browsing. One-third reported losing more than an hour a day in checking e-mail and social media, and two-thirds said they would get more done if they were disconnected from the Internet for a set time each day. But in an international survey of information workers, almost half said using social media had increased their productivity. The younger the workers, the more likely they were to associate social-media use with greater productivity and to say they could do their jobs even better if their employer would loosen restrictions on the use of social media.
Another study, conducted by the Warwick Business School, in the United Kingdom, measured output instead of opinions. According to the researchers, using social media was associated with greater productivity. The two-year study of employees at a telecommunications company found that they were more productive when they used social media to communicate with customers. The mixed results suggest that a single policy might not apply equally well to all employees.
How could human resource management support decisions about creating a policy for using social media
Question
Providing HR Services on Mobile Devices
Software companies are creating apps that let employees view their pay stubs, request time off, check the amounts of their bonuses, fill out and approve time sheets, look up coworkers in company directories, and more. At the same time, a growing number of employees expect to be able to use their mobile devices for looking up work-related information. Given the possibility of and pressure for mobile HRM, here are some guidelines for making it work:
• Learn which mobile devices employees are using. Make sure applications will run properly on all the devices.
• Set priorities for introducing mobile applications that support your company's strategy.
• Make sure your company has mobile-friendly versions of its careers website. Many of today's job hunters are looking for leads on their mobile devices, and they expect to be able to submit an application that way.
• If your company uses online training, create versions that run well on mobile devices.
• Select vendors that not only have software for existing mobile devices but also will be flexible as hardware changes. Check references to find out whether vendors have a history of keeping up with changing technology.
• Investigate the security protection built into any app you are considering.
• Test mobile HRM apps to be sure they are easy to use and understand.
What could be an advantage of using a software vendor for mobile HR apps, instead of having your organization's employees create the apps
Question
Radio Flyer Rolls Forward
The mid-2000s were a difficult time for Radio Flyer, a private business famous for its little red wagons. After spending hundreds of thousands of dollars to develop what they hoped was a hit, managers realized their idea wouldn't fly, so they killed it. And in the same year, management decided the company could no longer afford to build wagons in the United States.
First, the development flop: Thomas Schlegel, vice president for product development, thought he had a winner with an idea for a collapsible wagon to be called Fold 2 Go Wagon. It would be a fun product that parents could fold up and toss into the back of a minivan for a trip to the park or other outings. The problem was, a collapsing toy that children sit inside is difficult to make both functional and safe. The costs were excessive.
When Schlegel ended the project, he feared his reputation might suffer as well. But CEO Robert Pasin assured Schlegel that failure was acceptable as long as the company could learn from it. The value placed on learning became something that Schlegel capitalized on as his team applied what they learned to the development of a new success, the Twist Trike and a new model of its wagons called the Ultimate Family Wagon. Furthermore, Pasin expanded that one experience into a teaching opportunity. He invites new employees to join him for breakfasts, during which he recalls the incident as a way to reinforce the company's commitment to innovation and learning.
The story of Radio Flyer's need to outsource manufacturing has what some might see as a less-happy ending. Looking at the numbers, management determined that it would have to close its factory in Chicago and lay off about half of its workforce. Manufacturing moved to a factory in China. Pasin describes the effort as "an incredibly difficult time."
The company's effort with its remaining U.S. employees focused on building morale. These efforts include creating ideas for employees to have fun and pursue their passions, with events such as the Radio Flyer Olympics, during which employees compete in silly contests like tricycle races. More seriously, teams of employees tackle issues that they care about. The wellness committee put together a cash benefit that pays employees up to $300 for participating in health-related activities such as weight-loss counseling or running races. Another committee brought together employees concerned about the environment. They assembled a campaign aimed at persuading employees to reduce their carbon footprint.
In caring for the U.S. employees, Radio Flyer hasn't forgotten the ones in China. The company tries to maintain similar levels of benefits and engagement among the four dozen employees in its China office.
Do you think outsourcing would be harder on employees in a small company such as Radio Flyer than in a large corporation Why or why not How could HRM help smooth the transition
Question
Netflix Treats Workers "Like Adults"
When Patty McCord talks about human resource management at Netflix, she refers to treating people "like adults." McCord, until recently the company's chief talent officer, means the company hires people who are mature enough to take responsibility and then simply gives them responsibility. The result, McCord insists, is that employees live up to what is expected of them. If not, the company feels free to find someone else. That direct approach makes sense to the knowledge workers who populate the results-oriented, data-respecting world of information technology.
When McCord was at Netflix, she and CEO Reed Hastings settled on five principles that would direct the company's approach to human resource management:
1. Hire, reward, and keep only "fully formed adults" For McCord and Hastings, such employees use common sense, address problems openly, and put company interests ahead of their own. People like this need not be managed with endless policies. Rather, the company can trust them to take off time when they need it and spend money appropriately. The employees also are literally adults; Netflix favors hiring experienced workers over recruiting at colleges.
2. Tell the truth about performance. Managers are expected to make performance feedback part of their routine conversations with employees. If an employee is no longer working out, managers are supposed to let him or her know directly, offering a good severance package to smooth a dignified path to the exit.
3. Managers are responsible for creating great teams. The manager of each group is expected to envision what that group should accomplish and what skills are necessary. If the manager needs different skills than the ones already on the team, the manager is supposed to make changes. To keep workers on the team, Netflix is open about paying salaries in line with the labor market-what employees would be offered if they considered leaving for a competitor.
4. The company's leaders must create the company culture. Netflix executives are supposed to model behaviors such as truth-telling and treating people like adults.
5. HR managers should think of themselves first as businesspeople. As chief talent manager, McCord focused on the company's financial success and products, not on employee morale. She assumed that if employees, as adults, were able to make Netflix a high-performance organization and be compensated fairly, that would improve morale more than anything.
To put these principles into action, Netflix rewards high-performing employees with fair pay and a flexible schedule. Employees who do not perform up to standards are asked to leave. Rewarding high performance, in fact, makes it easier to allow flexibility and empowerment, because managers do not have to police every action and decision. It also creates an environment in which employees do not assume they have a Netflix job forever. Rather, they are responsible for doing good work and developing the skills that continue to make them valuable to their employer. Netflix's approach to talent helps the company stay agile-perhaps agile enough to withstand the shifting winds of entertainment in the digital age.
What qualities of Netflix support the idea that it is a high-performance work system What other qualities would contribute to it being a high-performance work system
Question
Outsourcing Enriches the Bottom Line for Land O'Lakes
Land O'Lakes is an example of a company that has successfully reduced costs by outsourcing human resource activities. Best known for its butter and other dairy products, the company is a food and agriculture cooperative owned by the farmers who participate in the business. The co-op's 10,000 employees work toward a strategy of delivering strong financial performance for its farmer-owners while providing programs and services that help the farmers operate more successfully.
In support of that strategy, Pam Grove, the senior director of benefits and HR operations, led Land O'Lakes to outsource the administration of employee benefits. Management determined that benefits administration was not an activity that contributed to the company's strategy, and Land O'Lakes already had successfully used an outside firm to administer its 401 (k) retirement savings plan. So Grove arranged to have a firm administer its health insurance and pension plans as well.
Outsourcing achieved the basic goal of reducing costs, but that was not the only advantage. Grove freed up time for focusing on strategy-related activities, and she says the outsourcing arrangement also has improved service to employees. When the company tackled health benefit costs by offering a high-deductible health plan, which shifts spending decisions to employees, Grove and her staff visited 100 Land O'Lakes locations to explain the new option. Employee enrollment was double her expectations, helping the company save millions of dollars while keeping employees satisfied with their benefits.
When does outsourcing make strategic sense for an organization such as Land O'Lakes
Question
At many organizations, goals include improving people's performance by relying on knowledge workers, empowering employees, and assigning work to teams. How can HRM support these efforts
Question
Half of U.S. Employees Interested in Changing Jobs
Half of employed workers are looking for a new job or would welcome an offer, according to a U.S. survey by the Jobvite software company. Looking at both employed and unemployed workers, Jobvite found that 71% are actively seeking or open to a new job. Jobvite's CEO notes that workers with mobile devices are looking for jobs "all the time."
What challenges and opportunities do employers face in a climate where half of an organization's employees feel ready to leave
Half of U.S. Employees Interested in Changing Jobs Half of employed workers are looking for a new job or would welcome an offer, according to a U.S. survey by the Jobvite software company. Looking at both employed and unemployed workers, Jobvite found that 71% are actively seeking or open to a new job. Jobvite's CEO notes that workers with mobile devices are looking for jobs all the time. What challenges and opportunities do employers face in a climate where half of an organization's employees feel ready to leave  <div style=padding-top: 35px>
Question
HOW SHOULD EMPLOYERS PROTECT THEIR DATA ON EMPLOYEES' DEVICES
One area in which business managers might consult with HR managers involves the treatment of company data on employees' electronic devices. In the past, organizations stored their data on their own hardware. But laptop computers and, more recently, tablet computers and smartphones make it possible for employees to carry around data on these mobile devices. Increasingly often, the devices are not even owned by the company, but by the employees themselves. For example, an employee's smartphone might include business as well as personal contacts in several mobile apps.
The situation is convenient for everyone until something goes wrong: a device is lost, an employee becomes upset with a manager, or the organization lays off some workers. From the standpoint of protecting data, the obvious solution is to remove the data from the devices. So far, no law forbids this. However, it has consequences for the employees. Remotely wiping data from a device will remove all of it, including the user's personal data, such as photos and addresses.
Companies are addressing concerns by crafting security policies for employees who want to use their own devices for work-related tasks such as e-mail. Typically, the policy requires the employee to download a program for mobile device management. If specified conditions arise, such as loss of the device or termination of the employee, the company can use the software to send the device a message that wipes out all the data stored on the device. The company also can give the employee some notice, allowing time to save personal data, but this increases the risk to the company. Some employees have complained about their phones being unexpectedly erased after they left a company. They admit they might have been given a link to terms and conditions but tend not to read the terms of using a program such as company e-mail.
What advice would you give or actions would you take to ensure that the policy is administered fairly and equitably
Question
Less Helpful than a Search Engine
A lot of managers are disappointed in the support they get from their HR teams, according to a survey by the Hay Group, a global consulting firm. The survey questioned line managers and HR directors in China, the United Kingdom, and the United States about their working relationships. The results suggest that those relationships are often strained.
HR directors reported being challenged by cutbacks in their department. One-third said they spend 21% to 50% of their time responding to inquiries from managers, and three-fourths said line managers want immediate responses. For their part, 41% of line managers in the United States said the HR department is too slow in responding, and 47% said they could make decisions better and faster if they had more information from the department. An embarrassing 29% rated Google above the HR department for providing pertinent information.
Hay's consultants suggest that human resource managers need to focus on how they can empower line managers by providing them with easy access to relevant information.
Suggest one way that HR managers might improve their helpfulness to line managers
Question
Taking Care of People Gives Cisco Systems a Strategic Advantage
Strategic thinking about human resource management and other services has helped Cisco Systems take care of its people and even people beyond the organization. At the same time, it has helped the company, which sells computer networking hardware and services, maintain consistent growth and profitability.
During the recent recession, sales slowed, and Cisco's executives sought more efficient ways to operate. Out of that effort came a plan for restructuring HRM and other services such as purchasing and customer support. Management determined that these services would be delivered on a global scale as part of a Global Business Services unit. That unit, in turn, was divided into groups focused on delivering day-to-day services and others focused on strategic planning. HRM employees were divided, with some assigned to tactics and others to strategy.
The head of tactical HRM is Don McLaughlin, Cisco's vice president of employee experience. Applying his background in manufacturing, McLaughlin took a businesslike approach. He set measurable goals for hiring, training, rewards, communication, and work design, treating Cisco's employees as customers of those services. He measures the time to deliver each service and his customers' satisfaction. While driving down the cost of each service by at least 10%, McLaughlin has maintained or raised customer satisfaction scores. He works closely with the human resource partners assigned to support strategy for each Cisco group around the world. Those HR managers get to know their businesses and create plans for improving the company's talent, leadership, organization, and culture.
One of the regional HR managers is Danielle Monaghan, human resource partner in Cisco's Technical Services Division in San Jose, California. Born in South Africa, Monaghan worked for other technology companies before joining Cisco to manage human resources in Asia. In the Asian assignment, she saw firsthand some of the challenges of recruiting and developing talent in the continent's distinctive cultures. In Japan, for example, she needed to build networks to locate talent, because it is inappropriate to make a job search public. In China, the issues are developing leadership skills and learning to manage the rise of unions. Monaghan's global perspective is now helping Monaghan tackle strategic issues such as workforce planning.
Perhaps one of the company's most distinctive efforts is the Cisco Learning Network, which grew out of the training efforts of Cisco's education services division. The division trains customers and partners, and it saw an online network as a way to reach people around the world with information about how to use the technology Cisco sells. People from high school students through experienced professionals join the network to take classes, study together, and share ideas. As participation has ballooned from 600,000 in the first year to more than 2 million recently, the company added information about careers, job openings, and industry trends. The data created through social networking and the connections to a worldwide community have given Cisco an edge in building its reputation and understanding its labor market.
How have Cisco's HR managers balanced concerns for cost and quality
Question
What Social-Media Policies Are Suitable across Generations
Some managers believe organizations need policies restricting employees' access to social media such as Twitter and Facebook. Their belief is based on the assumption that using social media is merely a distraction from doing real work. However, the research evidence for this assumption is mixed -and the impact of social media may vary across generations of workers.
Some studies simply ask employees for their opinions about their access to social media. A survey of Canadian workers found that almost two-thirds have been distracted by social media, e-mail, or Web browsing. One-third reported losing more than an hour a day in checking e-mail and social media, and two-thirds said they would get more done if they were disconnected from the Internet for a set time each day. But in an international survey of information workers, almost half said using social media had increased their productivity. The younger the workers, the more likely they were to associate social-media use with greater productivity and to say they could do their jobs even better if their employer would loosen restrictions on the use of social media.
Another study, conducted by the Warwick Business School, in the United Kingdom, measured output instead of opinions. According to the researchers, using social media was associated with greater productivity. The two-year study of employees at a telecommunications company found that they were more productive when they used social media to communicate with customers. The mixed results suggest that a single policy might not apply equally well to all employees.
Thinking about your current job or a job you would like to have, would access to social media help or distract you Do you think your age plays a role in your opinion Why
Question
Radio Flyer Rolls Forward
The mid-2000s were a difficult time for Radio Flyer, a private business famous for its little red wagons. After spending hundreds of thousands of dollars to develop what they hoped was a hit, managers realized their idea wouldn't fly, so they killed it. And in the same year, management decided the company could no longer afford to build wagons in the United States.
First, the development flop: Thomas Schlegel, vice president for product development, thought he had a winner with an idea for a collapsible wagon to be called Fold 2 Go Wagon. It would be a fun product that parents could fold up and toss into the back of a minivan for a trip to the park or other outings. The problem was, a collapsing toy that children sit inside is difficult to make both functional and safe. The costs were excessive.
When Schlegel ended the project, he feared his reputation might suffer as well. But CEO Robert Pasin assured Schlegel that failure was acceptable as long as the company could learn from it. The value placed on learning became something that Schlegel capitalized on as his team applied what they learned to the development of a new success, the Twist Trike and a new model of its wagons called the Ultimate Family Wagon. Furthermore, Pasin expanded that one experience into a teaching opportunity. He invites new employees to join him for breakfasts, during which he recalls the incident as a way to reinforce the company's commitment to innovation and learning.
The story of Radio Flyer's need to outsource manufacturing has what some might see as a less-happy ending. Looking at the numbers, management determined that it would have to close its factory in Chicago and lay off about half of its workforce. Manufacturing moved to a factory in China. Pasin describes the effort as "an incredibly difficult time."
The company's effort with its remaining U.S. employees focused on building morale. These efforts include creating ideas for employees to have fun and pursue their passions, with events such as the Radio Flyer Olympics, during which employees compete in silly contests like tricycle races. More seriously, teams of employees tackle issues that they care about. The wellness committee put together a cash benefit that pays employees up to $300 for participating in health-related activities such as weight-loss counseling or running races. Another committee brought together employees concerned about the environment. They assembled a campaign aimed at persuading employees to reduce their carbon footprint.
In caring for the U.S. employees, Radio Flyer hasn't forgotten the ones in China. The company tries to maintain similar levels of benefits and engagement among the four dozen employees in its China office.
What additional developments described in this chapter could help Radio Flyer live out the high value it places on learning and innovation
Question
Providing HR Services on Mobile Devices
Software companies are creating apps that let employees view their pay stubs, request time off, check the amounts of their bonuses, fill out and approve time sheets, look up coworkers in company directories, and more. At the same time, a growing number of employees expect to be able to use their mobile devices for looking up work-related information. Given the possibility of and pressure for mobile HRM, here are some guidelines for making it work:
• Learn which mobile devices employees are using. Make sure applications will run properly on all the devices.
• Set priorities for introducing mobile applications that support your company's strategy.
• Make sure your company has mobile-friendly versions of its careers website. Many of today's job hunters are looking for leads on their mobile devices, and they expect to be able to submit an application that way.
• If your company uses online training, create versions that run well on mobile devices.
• Select vendors that not only have software for existing mobile devices but also will be flexible as hardware changes. Check references to find out whether vendors have a history of keeping up with changing technology.
• Investigate the security protection built into any app you are considering.
• Test mobile HRM apps to be sure they are easy to use and understand.
How could offering a mobile version of its careers website support an organization's strategy
Question
How do HRM practices such as performance management and work design encourage employee empowerment
Question
Radio Flyer Rolls Forward
The mid-2000s were a difficult time for Radio Flyer, a private business famous for its little red wagons. After spending hundreds of thousands of dollars to develop what they hoped was a hit, managers realized their idea wouldn't fly, so they killed it. And in the same year, management decided the company could no longer afford to build wagons in the United States.
First, the development flop: Thomas Schlegel, vice president for product development, thought he had a winner with an idea for a collapsible wagon to be called Fold 2 Go Wagon. It would be a fun product that parents could fold up and toss into the back of a minivan for a trip to the park or other outings. The problem was, a collapsing toy that children sit inside is difficult to make both functional and safe. The costs were excessive.
When Schlegel ended the project, he feared his reputation might suffer as well. But CEO Robert Pasin assured Schlegel that failure was acceptable as long as the company could learn from it. The value placed on learning became something that Schlegel capitalized on as his team applied what they learned to the development of a new success, the Twist Trike and a new model of its wagons called the Ultimate Family Wagon. Furthermore, Pasin expanded that one experience into a teaching opportunity. He invites new employees to join him for breakfasts, during which he recalls the incident as a way to reinforce the company's commitment to innovation and learning.
The story of Radio Flyer's need to outsource manufacturing has what some might see as a less-happy ending. Looking at the numbers, management determined that it would have to close its factory in Chicago and lay off about half of its workforce. Manufacturing moved to a factory in China. Pasin describes the effort as "an incredibly difficult time."
The company's effort with its remaining U.S. employees focused on building morale. These efforts include creating ideas for employees to have fun and pursue their passions, with events such as the Radio Flyer Olympics, during which employees compete in silly contests like tricycle races. More seriously, teams of employees tackle issues that they care about. The wellness committee put together a cash benefit that pays employees up to $300 for participating in health-related activities such as weight-loss counseling or running races. Another committee brought together employees concerned about the environment. They assembled a campaign aimed at persuading employees to reduce their carbon footprint.
In caring for the U.S. employees, Radio Flyer hasn't forgotten the ones in China. The company tries to maintain similar levels of benefits and engagement among the four dozen employees in its China office.
How could a human resource manager help Radio Flyer get the maximum benefit from the motivational efforts described in this case
Question
Merging, downsizing, and reengineering all can radically change the structure of an organization. Choose one of these changes, and describe HRM's role in making the change succeed. If possible, apply your discussion to an actual merger, downsizing, or reengineering effort that has recently occurred.
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Deck 2: Trends in Human Resource Management
1
Netflix Treats Workers "Like Adults"
When Patty McCord talks about human resource management at Netflix, she refers to treating people "like adults." McCord, until recently the company's chief talent officer, means the company hires people who are mature enough to take responsibility and then simply gives them responsibility. The result, McCord insists, is that employees live up to what is expected of them. If not, the company feels free to find someone else. That direct approach makes sense to the knowledge workers who populate the results-oriented, data-respecting world of information technology.
When McCord was at Netflix, she and CEO Reed Hastings settled on five principles that would direct the company's approach to human resource management:
1. Hire, reward, and keep only "fully formed adults" For McCord and Hastings, such employees use common sense, address problems openly, and put company interests ahead of their own. People like this need not be managed with endless policies. Rather, the company can trust them to take off time when they need it and spend money appropriately. The employees also are literally adults; Netflix favors hiring experienced workers over recruiting at colleges.
2. Tell the truth about performance. Managers are expected to make performance feedback part of their routine conversations with employees. If an employee is no longer working out, managers are supposed to let him or her know directly, offering a good severance package to smooth a dignified path to the exit.
3. Managers are responsible for creating great teams. The manager of each group is expected to envision what that group should accomplish and what skills are necessary. If the manager needs different skills than the ones already on the team, the manager is supposed to make changes. To keep workers on the team, Netflix is open about paying salaries in line with the labor market-what employees would be offered if they considered leaving for a competitor.
4. The company's leaders must create the company culture. Netflix executives are supposed to model behaviors such as truth-telling and treating people like adults.
5. HR managers should think of themselves first as businesspeople. As chief talent manager, McCord focused on the company's financial success and products, not on employee morale. She assumed that if employees, as adults, were able to make Netflix a high-performance organization and be compensated fairly, that would improve morale more than anything.
To put these principles into action, Netflix rewards high-performing employees with fair pay and a flexible schedule. Employees who do not perform up to standards are asked to leave. Rewarding high performance, in fact, makes it easier to allow flexibility and empowerment, because managers do not have to police every action and decision. It also creates an environment in which employees do not assume they have a Netflix job forever. Rather, they are responsible for doing good work and developing the skills that continue to make them valuable to their employer. Netflix's approach to talent helps the company stay agile-perhaps agile enough to withstand the shifting winds of entertainment in the digital age.
How well suited do you think Netflix's principles are to managing the knowledge workers (mainly software engineers) who work for Netflix Explain.
The given case is about company N which treats its people like adults. It means the company hires knowledge people who are mature enough to take responsibility of their job. The company is known for hiring such people and also bestows them with ample amount of freedom so that they can stay motivated to take risks and innovate to their best.
Suitability of company N's principles in managing the knowledge workers:
Knowledge workers are the key assets of an organization. Their ideas, opinions, judgments and experiences keep the business moving forward. However, it is not relevant to manage only knowledge people in an organization as company N do.
• Hire, reward, and keep only fully formed adults: This principle is not suitable for all aspects. Favoring only experienced people over fresher make no sense. It is people who gain experience with their work and at some point there will be shortage of experienced people. Every organization must give equal opportunity to experienced as well as fresher. Freshers should be provided with opportunities to gain experience and fill the gap of knowledge people in an organization.
• Tell the truth about performance: This principle is suitable in almost every aspect. Making performance feedback part of routine is beneficial for employees. They will get to know about the deviations and can make corrective efforts simultaneously.
• Managers are responsible for creating great teams: This principle is suitable as it is related to delegation of authority and responsibility. Delegating responsibilities to particular managers on envisioning the required skills is helpful in getting the best out of a team.
• The company's leaders must create the company culture: This principle can be made suitable to some extent. Leaders can lead by example to create the organizational culture. However, creating a collaborative culture should not only be the responsibility of leaders but employees should also have the sense of collaboration to implement it.
• HR managers should think of themselves first as business people: The principle is not suitable as HR managers must not focus on the financial success and product ignoring employee morale. Taking care of employees is the prime duty of human resource department and they must not ignore this duty anyhow. Focusing on financial success and products is necessary but without ignoring employee's morale.
2
When an organization decides to operate facilities in other countries, how can HRM practices support this change
Introduction
Human resource includes the entire employee who works for the organization to perform the designated task and achieve the desired goal. And, Human resource management is the process of managing the employees of the organization, which includes recruitment and training, motivation of employees, compensation and benefits etc.
Solution
Whenever an organization decides to operate their business activities in the other countries, that means the organization wants to expand the business in the global market, also known as off shoring. It is very important for the organization's future to survive and compete with the competitors and retain in the market. It also brings new challenge to the organization, how to capture the market, what strategies will work and how to compete in the foreign market to survive.
3
How does each of the following labor force trends affect HRM
a. Aging of the labor force.
b. Diversity of the labor force.
c. Skill deficiencies of the labor force.
Introduction
Human resource includes the entire employee who works for the organization to perform the designated task and achieve the desired goal. And, Human resource management is the process of managing the employees of the organization, which includes recruitment and training, motivation of employees, compensation and benefits etc.
Solution
Human resource management is a process which helps the employees to motivate themselves for high level performance and develop their skills to achieve the desired goal effectively and efficiently.
a.
Ageing of the labor force is common problem in every organization, this phase is a bit difficult because all the experienced and talented employees, who knows the work and the problems and knows how to tackle that problems are planning for retirement. But to cop-up with the same, the organization should plan for older employee like part-time jobs, temporary work assignments and providing extra health care facilities, which will encourage them to be with the organization. And at the same time the organization should attract youth employee to enter in the organization and retain in the organization, by training, motivating, rewards and recognition etc. for the future of the organization. Here, the HR executives should call for various training programs which will include the interaction of the new employees with the old employees so that the new ones can gain form the old employee's experiences.
b.
The organization should be bias free; they should respect and value all the employees whether they are women or minorities. They should encourage them for their education, growth and career development. Every employee should accept the cultural differences which will help the organization for future development and success and helps the nation for the same. Organizations hire the employees based on the talents and hiring a person from other diversity means that a person belongs to a different mindset and a different mindset results in innovative ideas generation.
c.
Now days there are various technical skills are required for the job because of computer based jobs and advanced technologies. Every organization are looking for such employees who have the ability to solve the problems, good decision making skills, manage the team and also have some technical knowledge so that they can interact confidently and creatively. Because of these requirements there are many employees who are working in less compensation, and to solve this problem the organization should start training and development classes to cover-up the gap and improve the skills. Also, the company should hire only those candidates which have the required skillset and thus, will avoid the employee training cost and time as well.
4
Why do organizations outsource HRM functions How does outsourcing affect the role of human resource professionals Would you be more attracted to the role of the HR professional in an organization that outsources many HR activities or in the outside firm that has the contract to provide the HR services Why
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5
HOW SHOULD EMPLOYERS PROTECT THEIR DATA ON EMPLOYEES' DEVICES
One area in which business managers might consult with HR managers involves the treatment of company data on employees' electronic devices. In the past, organizations stored their data on their own hardware. But laptop computers and, more recently, tablet computers and smartphones make it possible for employees to carry around data on these mobile devices. Increasingly often, the devices are not even owned by the company, but by the employees themselves. For example, an employee's smartphone might include business as well as personal contacts in several mobile apps.
The situation is convenient for everyone until something goes wrong: a device is lost, an employee becomes upset with a manager, or the organization lays off some workers. From the standpoint of protecting data, the obvious solution is to remove the data from the devices. So far, no law forbids this. However, it has consequences for the employees. Remotely wiping data from a device will remove all of it, including the user's personal data, such as photos and addresses.
Companies are addressing concerns by crafting security policies for employees who want to use their own devices for work-related tasks such as e-mail. Typically, the policy requires the employee to download a program for mobile device management. If specified conditions arise, such as loss of the device or termination of the employee, the company can use the software to send the device a message that wipes out all the data stored on the device. The company also can give the employee some notice, allowing time to save personal data, but this increases the risk to the company. Some employees have complained about their phones being unexpectedly erased after they left a company. They admit they might have been given a link to terms and conditions but tend not to read the terms of using a program such as company e-mail.
Imagine you work in the human resources department of a company considering a policy to protect its data on employees' mobile devices. In advising on this policy, what rights should you consider
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6
What HRM functions could an organization provide through self-service What are some advantages and disadvantages of using self-service for these functions
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7
Taking Care of People Gives Cisco Systems a Strategic Advantage
Strategic thinking about human resource management and other services has helped Cisco Systems take care of its people and even people beyond the organization. At the same time, it has helped the company, which sells computer networking hardware and services, maintain consistent growth and profitability.
During the recent recession, sales slowed, and Cisco's executives sought more efficient ways to operate. Out of that effort came a plan for restructuring HRM and other services such as purchasing and customer support. Management determined that these services would be delivered on a global scale as part of a Global Business Services unit. That unit, in turn, was divided into groups focused on delivering day-to-day services and others focused on strategic planning. HRM employees were divided, with some assigned to tactics and others to strategy.
The head of tactical HRM is Don McLaughlin, Cisco's vice president of employee experience. Applying his background in manufacturing, McLaughlin took a businesslike approach. He set measurable goals for hiring, training, rewards, communication, and work design, treating Cisco's employees as customers of those services. He measures the time to deliver each service and his customers' satisfaction. While driving down the cost of each service by at least 10%, McLaughlin has maintained or raised customer satisfaction scores. He works closely with the human resource partners assigned to support strategy for each Cisco group around the world. Those HR managers get to know their businesses and create plans for improving the company's talent, leadership, organization, and culture.
One of the regional HR managers is Danielle Monaghan, human resource partner in Cisco's Technical Services Division in San Jose, California. Born in South Africa, Monaghan worked for other technology companies before joining Cisco to manage human resources in Asia. In the Asian assignment, she saw firsthand some of the challenges of recruiting and developing talent in the continent's distinctive cultures. In Japan, for example, she needed to build networks to locate talent, because it is inappropriate to make a job search public. In China, the issues are developing leadership skills and learning to manage the rise of unions. Monaghan's global perspective is now helping Monaghan tackle strategic issues such as workforce planning.
Perhaps one of the company's most distinctive efforts is the Cisco Learning Network, which grew out of the training efforts of Cisco's education services division. The division trains customers and partners, and it saw an online network as a way to reach people around the world with information about how to use the technology Cisco sells. People from high school students through experienced professionals join the network to take classes, study together, and share ideas. As participation has ballooned from 600,000 in the first year to more than 2 million recently, the company added information about careers, job openings, and industry trends. The data created through social networking and the connections to a worldwide community have given Cisco an edge in building its reputation and understanding its labor market.
How has Cisco Systems prepared itself for responding to trends in the labor force
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8
How is the employment relationship that is typical of modern organizations different from the relationship of a generation ago
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9
Outsourcing Enriches the Bottom Line for Land O'Lakes
Land O'Lakes is an example of a company that has successfully reduced costs by outsourcing human resource activities. Best known for its butter and other dairy products, the company is a food and agriculture cooperative owned by the farmers who participate in the business. The co-op's 10,000 employees work toward a strategy of delivering strong financial performance for its farmer-owners while providing programs and services that help the farmers operate more successfully.
In support of that strategy, Pam Grove, the senior director of benefits and HR operations, led Land O'Lakes to outsource the administration of employee benefits. Management determined that benefits administration was not an activity that contributed to the company's strategy, and Land O'Lakes already had successfully used an outside firm to administer its 401 (k) retirement savings plan. So Grove arranged to have a firm administer its health insurance and pension plans as well.
Outsourcing achieved the basic goal of reducing costs, but that was not the only advantage. Grove freed up time for focusing on strategy-related activities, and she says the outsourcing arrangement also has improved service to employees. When the company tackled health benefit costs by offering a high-deductible health plan, which shifts spending decisions to employees, Grove and her staff visited 100 Land O'Lakes locations to explain the new option. Employee enrollment was double her expectations, helping the company save millions of dollars while keeping employees satisfied with their benefits.
How does Grove ensure that a cost-conscious practice such as outsourcing is well received by employees
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10
Discuss several advantages of flexible work schedules. What are some disadvantages
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11
Less Helpful than a Search Engine
A lot of managers are disappointed in the support they get from their HR teams, according to a survey by the Hay Group, a global consulting firm. The survey questioned line managers and HR directors in China, the United Kingdom, and the United States about their working relationships. The results suggest that those relationships are often strained.
HR directors reported being challenged by cutbacks in their department. One-third said they spend 21% to 50% of their time responding to inquiries from managers, and three-fourths said line managers want immediate responses. For their part, 41% of line managers in the United States said the HR department is too slow in responding, and 47% said they could make decisions better and faster if they had more information from the department. An embarrassing 29% rated Google above the HR department for providing pertinent information.
Hay's consultants suggest that human resource managers need to focus on how they can empower line managers by providing them with easy access to relevant information.
Suggest one way that line managers can improve communications with HR managers, so they get the support they need.
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12
What Social-Media Policies Are Suitable across Generations
Some managers believe organizations need policies restricting employees' access to social media such as Twitter and Facebook. Their belief is based on the assumption that using social media is merely a distraction from doing real work. However, the research evidence for this assumption is mixed -and the impact of social media may vary across generations of workers.
Some studies simply ask employees for their opinions about their access to social media. A survey of Canadian workers found that almost two-thirds have been distracted by social media, e-mail, or Web browsing. One-third reported losing more than an hour a day in checking e-mail and social media, and two-thirds said they would get more done if they were disconnected from the Internet for a set time each day. But in an international survey of information workers, almost half said using social media had increased their productivity. The younger the workers, the more likely they were to associate social-media use with greater productivity and to say they could do their jobs even better if their employer would loosen restrictions on the use of social media.
Another study, conducted by the Warwick Business School, in the United Kingdom, measured output instead of opinions. According to the researchers, using social media was associated with greater productivity. The two-year study of employees at a telecommunications company found that they were more productive when they used social media to communicate with customers. The mixed results suggest that a single policy might not apply equally well to all employees.
How could human resource management support decisions about creating a policy for using social media
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13
Providing HR Services on Mobile Devices
Software companies are creating apps that let employees view their pay stubs, request time off, check the amounts of their bonuses, fill out and approve time sheets, look up coworkers in company directories, and more. At the same time, a growing number of employees expect to be able to use their mobile devices for looking up work-related information. Given the possibility of and pressure for mobile HRM, here are some guidelines for making it work:
• Learn which mobile devices employees are using. Make sure applications will run properly on all the devices.
• Set priorities for introducing mobile applications that support your company's strategy.
• Make sure your company has mobile-friendly versions of its careers website. Many of today's job hunters are looking for leads on their mobile devices, and they expect to be able to submit an application that way.
• If your company uses online training, create versions that run well on mobile devices.
• Select vendors that not only have software for existing mobile devices but also will be flexible as hardware changes. Check references to find out whether vendors have a history of keeping up with changing technology.
• Investigate the security protection built into any app you are considering.
• Test mobile HRM apps to be sure they are easy to use and understand.
What could be an advantage of using a software vendor for mobile HR apps, instead of having your organization's employees create the apps
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14
Radio Flyer Rolls Forward
The mid-2000s were a difficult time for Radio Flyer, a private business famous for its little red wagons. After spending hundreds of thousands of dollars to develop what they hoped was a hit, managers realized their idea wouldn't fly, so they killed it. And in the same year, management decided the company could no longer afford to build wagons in the United States.
First, the development flop: Thomas Schlegel, vice president for product development, thought he had a winner with an idea for a collapsible wagon to be called Fold 2 Go Wagon. It would be a fun product that parents could fold up and toss into the back of a minivan for a trip to the park or other outings. The problem was, a collapsing toy that children sit inside is difficult to make both functional and safe. The costs were excessive.
When Schlegel ended the project, he feared his reputation might suffer as well. But CEO Robert Pasin assured Schlegel that failure was acceptable as long as the company could learn from it. The value placed on learning became something that Schlegel capitalized on as his team applied what they learned to the development of a new success, the Twist Trike and a new model of its wagons called the Ultimate Family Wagon. Furthermore, Pasin expanded that one experience into a teaching opportunity. He invites new employees to join him for breakfasts, during which he recalls the incident as a way to reinforce the company's commitment to innovation and learning.
The story of Radio Flyer's need to outsource manufacturing has what some might see as a less-happy ending. Looking at the numbers, management determined that it would have to close its factory in Chicago and lay off about half of its workforce. Manufacturing moved to a factory in China. Pasin describes the effort as "an incredibly difficult time."
The company's effort with its remaining U.S. employees focused on building morale. These efforts include creating ideas for employees to have fun and pursue their passions, with events such as the Radio Flyer Olympics, during which employees compete in silly contests like tricycle races. More seriously, teams of employees tackle issues that they care about. The wellness committee put together a cash benefit that pays employees up to $300 for participating in health-related activities such as weight-loss counseling or running races. Another committee brought together employees concerned about the environment. They assembled a campaign aimed at persuading employees to reduce their carbon footprint.
In caring for the U.S. employees, Radio Flyer hasn't forgotten the ones in China. The company tries to maintain similar levels of benefits and engagement among the four dozen employees in its China office.
Do you think outsourcing would be harder on employees in a small company such as Radio Flyer than in a large corporation Why or why not How could HRM help smooth the transition
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15
Netflix Treats Workers "Like Adults"
When Patty McCord talks about human resource management at Netflix, she refers to treating people "like adults." McCord, until recently the company's chief talent officer, means the company hires people who are mature enough to take responsibility and then simply gives them responsibility. The result, McCord insists, is that employees live up to what is expected of them. If not, the company feels free to find someone else. That direct approach makes sense to the knowledge workers who populate the results-oriented, data-respecting world of information technology.
When McCord was at Netflix, she and CEO Reed Hastings settled on five principles that would direct the company's approach to human resource management:
1. Hire, reward, and keep only "fully formed adults" For McCord and Hastings, such employees use common sense, address problems openly, and put company interests ahead of their own. People like this need not be managed with endless policies. Rather, the company can trust them to take off time when they need it and spend money appropriately. The employees also are literally adults; Netflix favors hiring experienced workers over recruiting at colleges.
2. Tell the truth about performance. Managers are expected to make performance feedback part of their routine conversations with employees. If an employee is no longer working out, managers are supposed to let him or her know directly, offering a good severance package to smooth a dignified path to the exit.
3. Managers are responsible for creating great teams. The manager of each group is expected to envision what that group should accomplish and what skills are necessary. If the manager needs different skills than the ones already on the team, the manager is supposed to make changes. To keep workers on the team, Netflix is open about paying salaries in line with the labor market-what employees would be offered if they considered leaving for a competitor.
4. The company's leaders must create the company culture. Netflix executives are supposed to model behaviors such as truth-telling and treating people like adults.
5. HR managers should think of themselves first as businesspeople. As chief talent manager, McCord focused on the company's financial success and products, not on employee morale. She assumed that if employees, as adults, were able to make Netflix a high-performance organization and be compensated fairly, that would improve morale more than anything.
To put these principles into action, Netflix rewards high-performing employees with fair pay and a flexible schedule. Employees who do not perform up to standards are asked to leave. Rewarding high performance, in fact, makes it easier to allow flexibility and empowerment, because managers do not have to police every action and decision. It also creates an environment in which employees do not assume they have a Netflix job forever. Rather, they are responsible for doing good work and developing the skills that continue to make them valuable to their employer. Netflix's approach to talent helps the company stay agile-perhaps agile enough to withstand the shifting winds of entertainment in the digital age.
What qualities of Netflix support the idea that it is a high-performance work system What other qualities would contribute to it being a high-performance work system
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16
Outsourcing Enriches the Bottom Line for Land O'Lakes
Land O'Lakes is an example of a company that has successfully reduced costs by outsourcing human resource activities. Best known for its butter and other dairy products, the company is a food and agriculture cooperative owned by the farmers who participate in the business. The co-op's 10,000 employees work toward a strategy of delivering strong financial performance for its farmer-owners while providing programs and services that help the farmers operate more successfully.
In support of that strategy, Pam Grove, the senior director of benefits and HR operations, led Land O'Lakes to outsource the administration of employee benefits. Management determined that benefits administration was not an activity that contributed to the company's strategy, and Land O'Lakes already had successfully used an outside firm to administer its 401 (k) retirement savings plan. So Grove arranged to have a firm administer its health insurance and pension plans as well.
Outsourcing achieved the basic goal of reducing costs, but that was not the only advantage. Grove freed up time for focusing on strategy-related activities, and she says the outsourcing arrangement also has improved service to employees. When the company tackled health benefit costs by offering a high-deductible health plan, which shifts spending decisions to employees, Grove and her staff visited 100 Land O'Lakes locations to explain the new option. Employee enrollment was double her expectations, helping the company save millions of dollars while keeping employees satisfied with their benefits.
When does outsourcing make strategic sense for an organization such as Land O'Lakes
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17
At many organizations, goals include improving people's performance by relying on knowledge workers, empowering employees, and assigning work to teams. How can HRM support these efforts
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18
Half of U.S. Employees Interested in Changing Jobs
Half of employed workers are looking for a new job or would welcome an offer, according to a U.S. survey by the Jobvite software company. Looking at both employed and unemployed workers, Jobvite found that 71% are actively seeking or open to a new job. Jobvite's CEO notes that workers with mobile devices are looking for jobs "all the time."
What challenges and opportunities do employers face in a climate where half of an organization's employees feel ready to leave
Half of U.S. Employees Interested in Changing Jobs Half of employed workers are looking for a new job or would welcome an offer, according to a U.S. survey by the Jobvite software company. Looking at both employed and unemployed workers, Jobvite found that 71% are actively seeking or open to a new job. Jobvite's CEO notes that workers with mobile devices are looking for jobs all the time. What challenges and opportunities do employers face in a climate where half of an organization's employees feel ready to leave
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19
HOW SHOULD EMPLOYERS PROTECT THEIR DATA ON EMPLOYEES' DEVICES
One area in which business managers might consult with HR managers involves the treatment of company data on employees' electronic devices. In the past, organizations stored their data on their own hardware. But laptop computers and, more recently, tablet computers and smartphones make it possible for employees to carry around data on these mobile devices. Increasingly often, the devices are not even owned by the company, but by the employees themselves. For example, an employee's smartphone might include business as well as personal contacts in several mobile apps.
The situation is convenient for everyone until something goes wrong: a device is lost, an employee becomes upset with a manager, or the organization lays off some workers. From the standpoint of protecting data, the obvious solution is to remove the data from the devices. So far, no law forbids this. However, it has consequences for the employees. Remotely wiping data from a device will remove all of it, including the user's personal data, such as photos and addresses.
Companies are addressing concerns by crafting security policies for employees who want to use their own devices for work-related tasks such as e-mail. Typically, the policy requires the employee to download a program for mobile device management. If specified conditions arise, such as loss of the device or termination of the employee, the company can use the software to send the device a message that wipes out all the data stored on the device. The company also can give the employee some notice, allowing time to save personal data, but this increases the risk to the company. Some employees have complained about their phones being unexpectedly erased after they left a company. They admit they might have been given a link to terms and conditions but tend not to read the terms of using a program such as company e-mail.
What advice would you give or actions would you take to ensure that the policy is administered fairly and equitably
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20
Less Helpful than a Search Engine
A lot of managers are disappointed in the support they get from their HR teams, according to a survey by the Hay Group, a global consulting firm. The survey questioned line managers and HR directors in China, the United Kingdom, and the United States about their working relationships. The results suggest that those relationships are often strained.
HR directors reported being challenged by cutbacks in their department. One-third said they spend 21% to 50% of their time responding to inquiries from managers, and three-fourths said line managers want immediate responses. For their part, 41% of line managers in the United States said the HR department is too slow in responding, and 47% said they could make decisions better and faster if they had more information from the department. An embarrassing 29% rated Google above the HR department for providing pertinent information.
Hay's consultants suggest that human resource managers need to focus on how they can empower line managers by providing them with easy access to relevant information.
Suggest one way that HR managers might improve their helpfulness to line managers
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21
Taking Care of People Gives Cisco Systems a Strategic Advantage
Strategic thinking about human resource management and other services has helped Cisco Systems take care of its people and even people beyond the organization. At the same time, it has helped the company, which sells computer networking hardware and services, maintain consistent growth and profitability.
During the recent recession, sales slowed, and Cisco's executives sought more efficient ways to operate. Out of that effort came a plan for restructuring HRM and other services such as purchasing and customer support. Management determined that these services would be delivered on a global scale as part of a Global Business Services unit. That unit, in turn, was divided into groups focused on delivering day-to-day services and others focused on strategic planning. HRM employees were divided, with some assigned to tactics and others to strategy.
The head of tactical HRM is Don McLaughlin, Cisco's vice president of employee experience. Applying his background in manufacturing, McLaughlin took a businesslike approach. He set measurable goals for hiring, training, rewards, communication, and work design, treating Cisco's employees as customers of those services. He measures the time to deliver each service and his customers' satisfaction. While driving down the cost of each service by at least 10%, McLaughlin has maintained or raised customer satisfaction scores. He works closely with the human resource partners assigned to support strategy for each Cisco group around the world. Those HR managers get to know their businesses and create plans for improving the company's talent, leadership, organization, and culture.
One of the regional HR managers is Danielle Monaghan, human resource partner in Cisco's Technical Services Division in San Jose, California. Born in South Africa, Monaghan worked for other technology companies before joining Cisco to manage human resources in Asia. In the Asian assignment, she saw firsthand some of the challenges of recruiting and developing talent in the continent's distinctive cultures. In Japan, for example, she needed to build networks to locate talent, because it is inappropriate to make a job search public. In China, the issues are developing leadership skills and learning to manage the rise of unions. Monaghan's global perspective is now helping Monaghan tackle strategic issues such as workforce planning.
Perhaps one of the company's most distinctive efforts is the Cisco Learning Network, which grew out of the training efforts of Cisco's education services division. The division trains customers and partners, and it saw an online network as a way to reach people around the world with information about how to use the technology Cisco sells. People from high school students through experienced professionals join the network to take classes, study together, and share ideas. As participation has ballooned from 600,000 in the first year to more than 2 million recently, the company added information about careers, job openings, and industry trends. The data created through social networking and the connections to a worldwide community have given Cisco an edge in building its reputation and understanding its labor market.
How have Cisco's HR managers balanced concerns for cost and quality
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22
What Social-Media Policies Are Suitable across Generations
Some managers believe organizations need policies restricting employees' access to social media such as Twitter and Facebook. Their belief is based on the assumption that using social media is merely a distraction from doing real work. However, the research evidence for this assumption is mixed -and the impact of social media may vary across generations of workers.
Some studies simply ask employees for their opinions about their access to social media. A survey of Canadian workers found that almost two-thirds have been distracted by social media, e-mail, or Web browsing. One-third reported losing more than an hour a day in checking e-mail and social media, and two-thirds said they would get more done if they were disconnected from the Internet for a set time each day. But in an international survey of information workers, almost half said using social media had increased their productivity. The younger the workers, the more likely they were to associate social-media use with greater productivity and to say they could do their jobs even better if their employer would loosen restrictions on the use of social media.
Another study, conducted by the Warwick Business School, in the United Kingdom, measured output instead of opinions. According to the researchers, using social media was associated with greater productivity. The two-year study of employees at a telecommunications company found that they were more productive when they used social media to communicate with customers. The mixed results suggest that a single policy might not apply equally well to all employees.
Thinking about your current job or a job you would like to have, would access to social media help or distract you Do you think your age plays a role in your opinion Why
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23
Radio Flyer Rolls Forward
The mid-2000s were a difficult time for Radio Flyer, a private business famous for its little red wagons. After spending hundreds of thousands of dollars to develop what they hoped was a hit, managers realized their idea wouldn't fly, so they killed it. And in the same year, management decided the company could no longer afford to build wagons in the United States.
First, the development flop: Thomas Schlegel, vice president for product development, thought he had a winner with an idea for a collapsible wagon to be called Fold 2 Go Wagon. It would be a fun product that parents could fold up and toss into the back of a minivan for a trip to the park or other outings. The problem was, a collapsing toy that children sit inside is difficult to make both functional and safe. The costs were excessive.
When Schlegel ended the project, he feared his reputation might suffer as well. But CEO Robert Pasin assured Schlegel that failure was acceptable as long as the company could learn from it. The value placed on learning became something that Schlegel capitalized on as his team applied what they learned to the development of a new success, the Twist Trike and a new model of its wagons called the Ultimate Family Wagon. Furthermore, Pasin expanded that one experience into a teaching opportunity. He invites new employees to join him for breakfasts, during which he recalls the incident as a way to reinforce the company's commitment to innovation and learning.
The story of Radio Flyer's need to outsource manufacturing has what some might see as a less-happy ending. Looking at the numbers, management determined that it would have to close its factory in Chicago and lay off about half of its workforce. Manufacturing moved to a factory in China. Pasin describes the effort as "an incredibly difficult time."
The company's effort with its remaining U.S. employees focused on building morale. These efforts include creating ideas for employees to have fun and pursue their passions, with events such as the Radio Flyer Olympics, during which employees compete in silly contests like tricycle races. More seriously, teams of employees tackle issues that they care about. The wellness committee put together a cash benefit that pays employees up to $300 for participating in health-related activities such as weight-loss counseling or running races. Another committee brought together employees concerned about the environment. They assembled a campaign aimed at persuading employees to reduce their carbon footprint.
In caring for the U.S. employees, Radio Flyer hasn't forgotten the ones in China. The company tries to maintain similar levels of benefits and engagement among the four dozen employees in its China office.
What additional developments described in this chapter could help Radio Flyer live out the high value it places on learning and innovation
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24
Providing HR Services on Mobile Devices
Software companies are creating apps that let employees view their pay stubs, request time off, check the amounts of their bonuses, fill out and approve time sheets, look up coworkers in company directories, and more. At the same time, a growing number of employees expect to be able to use their mobile devices for looking up work-related information. Given the possibility of and pressure for mobile HRM, here are some guidelines for making it work:
• Learn which mobile devices employees are using. Make sure applications will run properly on all the devices.
• Set priorities for introducing mobile applications that support your company's strategy.
• Make sure your company has mobile-friendly versions of its careers website. Many of today's job hunters are looking for leads on their mobile devices, and they expect to be able to submit an application that way.
• If your company uses online training, create versions that run well on mobile devices.
• Select vendors that not only have software for existing mobile devices but also will be flexible as hardware changes. Check references to find out whether vendors have a history of keeping up with changing technology.
• Investigate the security protection built into any app you are considering.
• Test mobile HRM apps to be sure they are easy to use and understand.
How could offering a mobile version of its careers website support an organization's strategy
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25
How do HRM practices such as performance management and work design encourage employee empowerment
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26
Radio Flyer Rolls Forward
The mid-2000s were a difficult time for Radio Flyer, a private business famous for its little red wagons. After spending hundreds of thousands of dollars to develop what they hoped was a hit, managers realized their idea wouldn't fly, so they killed it. And in the same year, management decided the company could no longer afford to build wagons in the United States.
First, the development flop: Thomas Schlegel, vice president for product development, thought he had a winner with an idea for a collapsible wagon to be called Fold 2 Go Wagon. It would be a fun product that parents could fold up and toss into the back of a minivan for a trip to the park or other outings. The problem was, a collapsing toy that children sit inside is difficult to make both functional and safe. The costs were excessive.
When Schlegel ended the project, he feared his reputation might suffer as well. But CEO Robert Pasin assured Schlegel that failure was acceptable as long as the company could learn from it. The value placed on learning became something that Schlegel capitalized on as his team applied what they learned to the development of a new success, the Twist Trike and a new model of its wagons called the Ultimate Family Wagon. Furthermore, Pasin expanded that one experience into a teaching opportunity. He invites new employees to join him for breakfasts, during which he recalls the incident as a way to reinforce the company's commitment to innovation and learning.
The story of Radio Flyer's need to outsource manufacturing has what some might see as a less-happy ending. Looking at the numbers, management determined that it would have to close its factory in Chicago and lay off about half of its workforce. Manufacturing moved to a factory in China. Pasin describes the effort as "an incredibly difficult time."
The company's effort with its remaining U.S. employees focused on building morale. These efforts include creating ideas for employees to have fun and pursue their passions, with events such as the Radio Flyer Olympics, during which employees compete in silly contests like tricycle races. More seriously, teams of employees tackle issues that they care about. The wellness committee put together a cash benefit that pays employees up to $300 for participating in health-related activities such as weight-loss counseling or running races. Another committee brought together employees concerned about the environment. They assembled a campaign aimed at persuading employees to reduce their carbon footprint.
In caring for the U.S. employees, Radio Flyer hasn't forgotten the ones in China. The company tries to maintain similar levels of benefits and engagement among the four dozen employees in its China office.
How could a human resource manager help Radio Flyer get the maximum benefit from the motivational efforts described in this case
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27
Merging, downsizing, and reengineering all can radically change the structure of an organization. Choose one of these changes, and describe HRM's role in making the change succeed. If possible, apply your discussion to an actual merger, downsizing, or reengineering effort that has recently occurred.
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